HP-12C WACC Company
Computes WACC Weighted Average Cost of Capital by HP-12C with debt and equity proportions.
—
HP-12C WACC — Weighted Average Cost of Capital
WACC mixes the cost of equity with the after-tax cost of debt, weighting each by its share of the capital structure: WACC = (E/V)·Ke + (D/V)·Kd·(1-T) where E/D are the market values of equity and debt, V = E+D, and T is the tax rate. Ke comes from CAPM: Rf + β·(Rm-Rf). To give a sense of scale, Petrobras runs around 12-14% in Brazil, Vale closer to 10-12%, and banks are handled through the Ks model.
In a DCF, WACC is the rate you use to discount unlevered free cash flows. Feed it market values (não contábeis), the current yield-to-maturity for debt, and a CAPM beta pulled from Bloomberg or Refinitiv. This shows up in CFA Level 2 Equity and in Damodaran's "Investment Valuation" 3rd ed.
Applications
DCF valuation, the hurdle rate in capital budgeting, an EVA/ROIC benchmark, dividend policy, and share buyback decisions.
FAQ
Book value or market value? Sempre market, já que o book underestima Ke historicamente.
Pre-tax or after-tax Kd? Após impostos, porque interest is tax-deductible (juros economizam IR).
WACC para empresa privada? Use comparáveis públicas (peers) ou a industry average from the Damodaran dataset.
Related Tools
Rent Adjustment Calculator
Compute annual rent adjustment by IGP-M or IPCA accumulated in the last 12 months (manually configurable).
Pregnancy Calculator
Compute estimated due date (EDD), gestational age and trimester from the last menstrual period (LMP).
Fertile Period Calculator
Compute fertile window and ovulation day from the first day of the last cycle and the average cycle length.